UK Financial Investments Limited (UKFI) has announced that it intends to sell part of HM Treasury’s shareholding in The Royal Bank of Scotland Group plc.
It is looking to dispose of approximately 5.2% of the Group to institutional investors.
As a result of the placing, the overall size of HM Treasury’s economic interest in the capital of the company (which includes its holding of ordinary shares and B shares in the company) will be reduced from approximately 78.3% to approximately 73.2% and its holding of ordinary shares in the company will be reduced from approximately 61.3% to approximately 52.0%.
Chris Leslie MP, Labour’s Shadow Chancellor, said: “RBS had to be bailed out urgently, but it doesn’t have to be sold off at the same speed.
“Labour has always supported the eventual return of RBS to the private sector but taxpayers who bailed out the bank will want their money back and will be suspicious of any fire sale. The Chancellor needs to justify his haste in selling off a chunk of RBS while the bank is still awaiting a US settlement for the mis-selling of sub-prime mortgages.
“Two years ago George Osborne said he would only countenance a sale of RBS when ‘the bank is fully able to support our economy and when we get good value’. Neither of these tests has yet been passed.”
